Leases and Capacity Purchase Agreements (Tables)

12 Months Ended

Dec. 31, 2012

Future Minimum Lease Payments for Capital and Operating Leases

At December 31, 2012, the Company’s scheduled future minimum lease payments under operating leases having initial or remaining noncancelable lease terms of more than one year, aircraft leases, including aircraft rent under capacity purchase agreements and capital leases (substantially all of which are for aircraft) were as follows (in millions):

	UAL (b)		United		Continental
Aircraft Operating Leases
2013	$	1,543	$	647	$	905
2014		1,466		595		878
2015		1,198		417		783
2016		960		246		714
2017		861		179		682
After 2017		1,491		213		1,278
	$	7,519	$	2,297	$	5,240
Facility and Other Operating Leases
2013	$	1,108	$	713	$	395
2014		955		586		369
2015		816		460		356
2016		744		418		326
2017		696		411		285
After 2017		5,376		1,926		3,450
	$	9,695	$	4,514	$	5,181
Capital Leases (a)
2013	$	214	$	197	$	17
2014		197		182		15
2015		177		162		15
2016		164		149		15
2017		120		109		11
After 2017		582		238		344
Minimum lease payments	$	1,454	$	1,037	$	417
Imputed interest		(540)		(300)		(240)
Present value of minimum lease payments		914		737		177
Current portion		(122)		(119)		(3)
Long-term obligations under capital leases	$	792	$	618	$	174

(a) As of December 31, 2012, United’s aircraft capital lease minimum payments relate to leases of 49 mainline and 38 regional aircraft and Continental’s capital lease minimum payments relate to nonaircraft assets. United’s and Continental’s imputed interest rate ranges are 3.3% to 20.0% and 5.0% to 8.4%, respectively.

(b) The operating lease payments presented above include United’s and Continental’s future payments of $2 million and $128 million, respectively, related to nonoperating aircraft as of December 31, 2012. United and Continental have two and 23 nonoperating aircraft subject to leases, respectively. United’s regional carrier, Express Jet, subleases aircraft from Continental; UAL operating lease payments exclude payments related to these aircraft.

Nonaircraft Rent Expense

The table below summarizes the Company’s nonaircraft rent expense for the years ended December 31 (in millions):

	UAL		United		Continental Successor		Continental Predecessor
2012	$	1,278	$	654	$	624
2011		1,265		666		599
2010		839		685		154	$	452

Schedule of Lease Valuation Adjustments

The lease valuation adjustments are classified within other noncurrent assets and other noncurrent liabilities, respectively, and are as follows as of December 31, (in millions):

	UAL		United		Continental
Net deferred asset balance at December 31, 2010	$	108	$	108	$	—
Less: amortization for the year ended December 31, 2011		(14)		(14)		—
Net deferred asset balance at December 31, 2011		94		94		—
Less: amortization for the year ended December 31, 2012		(12)		(12)		—
Net deferred asset balance at December 31, 2012	$	82	$	82	$	—
Net deferred liability balance at December 31, 2010	$	(1,374)	$	—	$	(1,374)
Less: accretion for the year ended December 31, 2011		241		—		241
Net deferred liability balance at December 31, 2011		(1,133)		—		(1,133)
Less: accretion for the year ended December 31, 2012		252		—		252
Net deferred liability balance at December 31, 2012	$	(881)	$	—	$	(881)

Future Lease Payment Under Terms of Capacity Purchase Agreement

These amounts exclude variable pass-through costs such as fuel and landing fees, among others.

	UAL		United		Continental
2013	$	1,801	$	931	$	870
2014		1,604		781		823
2015		1,422		691		731
2016		1,187		481		706
2017		1,159		472		687
After 2017		2,376		947		1,429
	$	9,549	$	4,303	$	5,246